The company has also reported Q2 2024 NFI of £2.3m, up 5% on Q1 2024, down 15% on Q2 2023 and up 28% on Q2 2022.

Its underlying earnings before income, taxes, depreciation and amortisation (EBITDA) is expected to be in the range of £100k to £150k , compared to H1 2023’s £270k. Underlying EBITDA excludes share based payment charges, the company said.

Other financial highlights included:
• Net debt (excluding lease liabilities) of £700k after annual bonus payments, a 42% improvement on 30 June 2023
• Executive search NFI down 4% on H1 2023
• Interim management down 47% on H1 2023, which, although the smallest part of the Broadbent business, represents 67% of the drop in NFI in H1 2024, primarily through a reduction of fixed-term contract placements
• Number of search mandates secured up 5% on H1 2023, although average fee value per mandate was down 9%, reflecting industry-wide trends, particularly in the UK
• £100k bad debt provision taken due to clients facing business challenges, “some of which may be recoverable”, the company statement said.

Norman Broadbent said it expects to announce its unaudited interim results for H1 2024 in early September 2024.

Kevin Davidson, CEO of Norman Broadbent, commented: “Growth is rarely linear quarter to quarter, but there is no doubt that, as is the case across the entire executive search and staffing industries, we are navigating extremely challenging market conditions. However, this doesn’t impact the confidence we have in our prospects. Therefore, while having been cost conscious in H1 2024, we have continued to invest, growing and upgrading headcount to ensure that the Company is well positioned to capitalise on the recovery when it comes.

“Consistent with our long-term growth ambitions, we are actively exploring synergistic acquisition opportunities and pursuing high-quality hiring options in the US. With high levels of staff retention, general economic confidence beginning to return, inflation seemingly under control and an overall expectation of an improvement in market conditions in H2 2024, we remain confident in our ability to deliver on our target of £1.25m EBITDA by 2025.”

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